Midyear HSA Assets Reach $23 Billion

Health savings account (HSA) assets have grown to $22.8 billion as of June 30, 2014, according to recent research from Devenir. The 2014 Midyear HSA Survey also found that HSA accounts rose to almost 11.8 million. This is a year-over-year increase of 26 percent for HSA assets and 29 percent for HSA accounts, the study noted.

“Our research shows that accountholders are both utilizing their HSA for current medical expenses as well as saving for future health care expenses. HSAs appear to be working and that’s exciting,” said Jon Robb, senior vice president of research at Devenir.

The survey also found the following:

• Health plans drive growth. In the first half of 2014, health plans were the leading driver of new account growth, accounting for 31 percent of new accounts.

• Continued strong market fuels HSA investment growth. HSA investment assets reached an estimated $2.9 billion in June, up 45 percent from one year ago. The average investment account holder has a $12,473 average total balance.

• Investors show solid returns. Investors achieved an average annualized return of 10.6 percent on their HSA investments over the last five years.

“Our findings show that HSAs continue to grow and those that have participated in HSA investment options on average are seeing the value of compounded tax deferred investment returns in their HSA for future medical costs,” said Eric Remjeske, president of Devenir. Devenir projects that by the end of 2014, the HSA market will likely exceed $24 billion in HSA assets covering more than 13 million accounts.

The survey was conducted in July 2014 and consists of data from HSA providers. For more information, visit http://www.devenir.com.

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